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Hardware Shop Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Hardware Shop Business Plan?

Writing a hardware shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products & services:.

Highlight the products you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• General hardware store
• Specialty hardware store (automotive supplies, construction hardware, etc)
• Online hardware store
• Industrial hardware store
• Plumbing hardware store
• Electrical hardware store
• Describe the legal structure of your hardware store, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established hardware store, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your hardware shop business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Hardware products:

Mention the products your business will offer. This list may include product categories like,

• Building materials
• Plumbing materials
• Electrical material
• Safety and protective equipment
• Hardware and fasteners

Mention if your hardware store offers any niche-specific services to the customers.

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your hardware plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your hardware store business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hardware shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for hardware, such as pipe cutters, pipe threaders, showroom displays, and fixtures, pressure testing equipment, cutting and measuring tools, office equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hardware shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your hardware store, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the hardware industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your retail hardware store business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample hardware shop business plan will provide an idea for writing a successful hardware plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hardware shop business plan pdf .

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Choose the Right Business Location

Frequently asked questions, why do you need a hardware shop business plan.

A business plan is an essential tool for anyone looking to start or run a successful hardware shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hardware store.

How to get funding for your hardware shop?

There are several ways to get funding for your hardware shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

How do I write a good market analysis in a hardware shop business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my hardware shop business plan?

The level of detail of the financial projections of your hardware shop may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a hardware shop business plan include?

The following are the key components your hardware shop business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

What's the importance of a marketing strategy in a hardware shop business plan?

Marketing strategy is a key component of your hardware shop business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Hardware Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Wholesale & Retail

Are you about starting a hardware store? If YES, here is a complete sample hardware store business plan template & feasibility report you can use for FREE .

So we have considered all the requirements for starting a hardware store. We also took it further by analyzing and drafting a sample hardware store business marketing plan template backed up by actionable guerrilla marketing ideas for hardware stores. So let’s proceed to the business planning section .

If you are looking for a business to start as an entrepreneur and you know you have an interest in running a store, then you should consider starting your own hardware store business. Although you don’t need a college degree to establish your own hardware store, but you would need some form of informal training.

It would help you to learn how to manage your own store. It is important to point out that hardware store business is one the businesses that can’t go out of fashion because of the role it plays in our society.  The startup capital for this type of business can be considered to be moderate.

As a matter of fact, you can start your own hardware store and then grow it big within a short period of time by reinvesting your profits back to the business. Below is a sample hardware store business plan template that will help you successfully write yours without much stress

A Sample Hardware Store Business Plan Template

1. industry overview.

Stores in the Hardware Stores industry primarily retail a broad range of home renovation equipment and related supplies. Products such as hardware, plumbing, electrical and paint-related tools et al are the most commonly stocked goods you will likely find in a hardware store.

If you are a follower of happenings in the industry, you would have noticed that the industry has steadily improved over the five years to 2017. As the housing market has strengthened and consumer confidence has revived, individuals have started home improvement projects that had been put on hold during the recession.

Low mortgage rates during the period have also encouraged individuals to purchase and renovate new and existing homes. This flurry of construction activity has boosted demand for industry products from both contractors and do-it-yourself consumers. Going forward, revenue generated by the Hardware Stores industry is projected to grow at a slower rate.

The Hardware Stores Industry is indeed a large industry and pretty much active in all the countries of the world. Statistics have it that in the united states of America alone, there are about 19,935 registered and licensed hardware stores scattered all across the United States responsible for directly employing about 148,516 people and the industry rakes in a whooping sum of $24 billion annually.

The industry is projected to grow at 1.3 percent within 2011 and 2016. It is important to state that Ace Hardware, Do It Best and True Value Company have the largest chunk of the available market share in the industry. A recent report published by IBISWorld shows that the Hardware Stores industry has moderate barriers to entry.

The report further stated that high startup costs and the saturated nature of the market may deter new companies from entering the industry. Operators that plan to enter this industry need to consider the capital investment required to establish or purchase a store.

For example, to be eligible to join True Value Company, prospective operators must have a minimum of $150,000 unencumbered cash available for investment, while the total investment to open an Ace store ranges from $823,495 to $1,563,495, depending on store size and other variable factors. Of the total investment, $150,000 to $250,000 cash is needed.

The tough part as it relates to start-up costs most likely are the need to establish a supply of hardware and other related goods from wholesalers or directly from manufacturing companies. This is so because a hardware store business cannot be started without sourcing products for sale.

Regardless of moderate barriers to entry, the competitive nature of the industry makes it very difficult for new operators to break even within a short period of time in the industry.

Lastly, the Hardware Stores industry is pretty much open for aspiring entrepreneurs to launch their business. One good thing about hardware stores business is that the business can be opened in any part of the United States and if proper market survey and feasibility studies are conducted, then you can be rest assured of the profitability of the business.

2. Executive Summary

Mike Mendez® Hardware Stores, Inc. is a standard hardware store that will be located in High Street, Short North Arts District, Columbus – Ohio.

We have been able to lease a facility that is big enough (a 4 thousand square foot facility) to fit into the design of the kind of standard hardware store that we intend launching and the facility is located in a corner piece along a major road close to one of the largest residential estates in Columbus – Ohio.

Mike Mendez® Hardware Stores, Inc. will retail products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and lumber and other building materials from different manufacturers in the United States and abroad. We are set to service a wide range of clientele in and around Columbus – Ohio.

We are aware that there are several large and small chains of hardware store outlets all around Columbus – Ohio, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service option for our customers, and our outlet is well secured with various payments of options. Mike Mendez® Hardware Stores, Inc. will ensure that all our customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions that directly affects them.

Mike Mendez® Hardware Stores, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Mike Mendez® Hardware Stores, Inc. is a family business that is owned by Mike Mendez and his immediate family members.

Mike Mendez has a Diploma in Business Administration with over 5 years of experience in the retailing stores industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in Columbus – Ohio, but there is a plan to open other outlets in major cities in the United States and Canada.

3. Our Products and Services

Mike Mendez® Hardware Stores, Inc. is in the hardware stores industry to service a wide range of clients and of course to make profits, which is why we will go all the way to make available a wide range of hardware and other related products from top manufacturing brands in the United States and other countries of the world.

Our product offerings are listed below;

• Retailing hardware
• Retailing tools and equipment
• Retailing plumbing fixtures and fittings
• Retailing electrical supplies
• Retailing paint and supplies
• Retailing garden products and equipment

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the hardware stores industry in Columbus – Ohio and in other key cities in the United States of America and Canada.
• Our mission is to establish a world – class hardware store business that will make available a wide range of hardware and other related products from top manufacturing brands at affordable prices to the residents of Columbus – Ohio and other key cities in the United States of America and Canada where we intend opening chains of hardware retail stores.

Our Business Structure

Mike Mendez® Hardware Stores, Inc. do not intend to start a hardware retail store business like the usual mom and pop business around the street corner; our intention of starting a hardware retail store business is to build a standard retail store outlet in Columbus – Ohio.

Although our hardware retail store business might not be as big as Ace Hardware, Do It Best and True Value Company et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Sales Agents / Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Grows management’s effectiveness by employing, selecting, orientating, preparation, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Accountable for providing direction for the business
• Builds, interconnects, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Accountable for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process.
• Carries out staff induction for new team members.
• Responsible for training, evaluation and assessment of employees.
• Accountable for arranging travel, meetings and appointments.
• Oversees the smooth running of the daily office cum business activities.

Store Manager:

• Responsible for managing the daily activities in the store.
• Ensures that proper records of hardware and other related products are kept and the warehouse does not run out of products.
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate.
• Interfaces with third – party suppliers.
• Controls hardware distribution and supply chain inventory.
• Oversees the workforce in the hardware sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and sundries and lumber and other building materials et al from different manufacturers are purchased and retailed in good price that will ensure we make good profit
• Accountable for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Document all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization’s website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Accountable for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• In control of financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• make suggestions and encourage purchase of products
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Bags or packages purchases
• Responsible for cleaning all the products and the store facility at all times.
• Ensures that toiletries and supplies don’t run out of stock.
• Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our hardware retail store in Columbus – Ohio is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in Ohio and key cities in the United States.

We are quite aware that there are several hardware retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Mike Mendez® Hardware Stores, Inc. employed the services of a Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Mike Mendez® Hardware Stores, Inc.;

Ability to control stock on hand, experienced work force and having a loyal customer base are some of our core strength. So also, our location, the business model we will be operating, varieties of payment options, wide range of hardware and other related products from different manufacturing brand and our excellent customer service culture will definitely count as a plus for Mike Mendez® Hardware Stores, Inc.

A major weakness that may count against us is the fact that we are a new hardware retail store outlet in Columbus – Ohio and we don’t have the financial capacity to compete with multi – million dollars’ hardware retail store outlets like Ace Hardware, Do It Best and True Value Company and co when it comes to retailing at rock bottom prices.

• Opportunities:

The fact that we are going to be operating our hardware retail store in a corner piece property along a major road close to one of the largest residential estates in Columbus – Ohio provides us with unlimited opportunities to sell our hardware and other related products to a large number of individuals.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our hardware store outlets.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new hardware store in same location where ours is located. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

Recent trends in the hardware industry show that external competition has slightly dampened both industry revenue and profit growth.

Hardware stores have shifted business models to deal with heightened external competition and they will continue to be pressured by online retailers and larger home improvement stores. Experts projected that in 2017, the hardware stores industry is expected to profit from growing global economic conditions.

The hardware retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a hardware retailer to reach out to a larger market far beyond the areas where his physical store is located.

8. Our Target Market

Those who patronize hardware stores cut across all genders above 18 years with the financial means, and who own an apartment or office/business hence the target market for the hardware store business is all encompassing. In essence, your target market can’t be restricted to just a group of people but all those who reside in and around our store location.

In view of that, we have positioned our hardware retail store to service the residents of High Street, Short North Arts District, Columbus – Ohio and every other location where franchise cum outlets of our hardware retail stores will be located.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of hardware and other related products to the following groups of people and corporate organizations;

• Construction and Real Estate Companies
• Banks, Insurance Companies and other related Financial Institutions
• Real Estate Owners, Developers, and Contractors
• The Government (Public works department)
• Schools (High Schools, Colleges and Universities)
• Sport Facilities
• Individuals and households

Our Competitive Advantage

A close study of the hardware stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other leading stores in Columbus – Ohio and throughout the United States. Mike Mendez® Hardware Stores, Inc. is launching a standard one stop hardware store that will indeed become the preferred choice of residents of Columbus – Ohio and every other location where our outlets will be opened.

One thing is certain; we will ensure that we have a wide range of hardware and other related products from leading manufacturers available in our store at all times. It will be difficult for customers to visit our store and not see the type of hardware they are looking for.

Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a Competitive Advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Mike Mendez® Hardware Stores, Inc. is in business to retail a wide range of hardware and other related products to the residents of Columbus – Ohio.

We are in the hardware stores industry to maximize profit and we are going to go all the way out to ensure that we achieve or business goals and objectives. Mike Mendez® Hardware Stores, Inc. will generate income by selling the following products;

10. Sales Forecast

When it comes to hardware retail stores, if your store is well stocked with various types of hardware and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Columbus – Ohio and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the hardware retail industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Columbus – Ohio.

Below are the sales projections for Mike Mendez® Hardware Stores, Inc. it is based on the location of our business and other factors as it relates to hardware retail startups in the United States;

• First Fiscal Year: $250,000
• Second Fiscal Year: $450,000
• Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Mike Mendez® Hardware Stores, Inc. we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the hardware retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Columbus – Ohio.

In other to continue to be in business and grow, we must continue to sell the hardware and other related products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Mike Mendez® Hardware Stores, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our store in a grand style with a party for all.
• Introduce our hardware store by sending introductory letters alongside our brochure to residents, businesses and other key stakeholders in Columbus – Ohio.
• Ensure that we have a wide range of hardware and other related products from different brands at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our store.
• Position our signage/flexi banners at strategic places around Columbus – Ohio
• Position our greeters to welcome and direct potential customers.
• Create a loyalty plan that will enable us reward our regular customers.
• Engage in roadshows within our neighborhood to create awareness for our hardware retail store.
• List our business and products on yellow pages ads (local directories).
• Leverage on the internet to promote our business.
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals).
• Join local chambers of commerce and industries to network and market our products.

11. Publicity and Advertising Strategy

Despite the fact that our hardware retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our hardware retail store.

Mike Mendez® Hardware Stores, Inc. has a long-term plan of opening outlets in various locations all around Ohio and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Columbus – Ohio before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Mike Mendez® Hardware Stores, Inc.;

• Place adverts on community based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers.
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that we position our banners and billboards in strategic positions all around Columbus – Ohio.
• Distribute our fliers and handbills in target areas in and around our neighborhood.
• Advertise our hardware retail store business in our official website and employ strategies that will help us pull traffic to the site.
• Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to hardware retail stores, it is normal for consumers to go to places where they can get hardware and other related products at cheaper price.

In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months, our products will be sold a little bit below the average price of various hardware stores in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

• Payment Options

The payment policy adopted by Mike Mendez® Hardware Stores, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mike Mendez® Hardware Stores, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our hardware and other related purchases without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard hardware shop in Columbus – Ohio and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Mike Mendez® Hardware Stores, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory  – $350,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up a standard hardware retail store in Columbus – Ohio.

Generating Funds/Startup Capital for Mike Mendez® Hardware Stores, Inc.

Mike Mendez® Hardware Stores, Inc. is a private registered business that is solely owned and financed by Mike Mendez and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Mike Mendez® Hardware Stores, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and sundries and lumber and other building materials et al from different manufacturers (brands) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Mike Mendez® Hardware Stores, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Design and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of hardware and other related products: In Progress

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Hardware Store

Back to All Business Ideas

How to Start a Hardware Store

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on May 24, 2022 Updated on March 13, 2024

Investment range

$83,550 - $119,100

Revenue potential

$547,000 - $1.37 million p.a.

Time to build

1 – 3 months

Profit potential

$55,000 - $137,000 p.a.

Industry trend

With the growing interest in DIY projects, particularly among millennials, hardware stores have been thriving, expanding nearly 46% in the last decade. If you have a passion for tools, you could start your own hardware store, provide an invaluable local service and eventually grow into the next Ace Hardware or Home Depot. 

But first you’ll need to know the nuts and bolts of starting a business and being an entrepreneur. Luckily, that information is all packed into this handy step-by-step guide, which will prepare you to launch and operate a successful hardware store. 

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Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting a hardware store has pros and cons to consider before deciding if it’s right for you.

• Resilient Market – Hardware stores even fared well during the pandemic
• Provide Value – Tools are required for many necessary tasks
• Good Money – Most tools are relatively expensive
• Investment Required – Building inventory requires upfront money
• Crowded Market – Compete with brands like True Value and Ace Hardware

Hardware store industry trends

Industry size and growth.

• Industry size and past growth – The US hardware stores industry is worth $35.1 billion in 2022 after expanding 4.8% annually for the last five years.(( https://www.ibisworld.com/industry-statistics/market-size/hardware-stores-united-states/ )) 
• Growth forecast – The US hardware store industry is projected to experience a very slight decline in 2022. 
• Number of businesses – In 2022, 14,918 hardware store businesses are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/hardware-stores-united-states/ )) 
• Number of people employed – In 2022, the US hardware stores industry employs 169,387 people.(( https://www.ibisworld.com/industry-statistics/employment/hardware-stores-united-states/ )) 

Trends and challenges

Trends in the hardware store industry include:

• The DIY home improvement market is growing, led by millennials, with many hardware stores branding themselves as DIY stores and offering classes. 
• Hardware delivery is on the rise, presenting an additional revenue opportunity for hardware stores.

Challenges in the hardware store industry include:

• The proliferation of online hardware stores is creating new competition for traditional hardware stores.
• The rise of stores like Home Depot and Lowe’s has driven many small hardware stores out of business. 

How much does it cost to start a hardware store business?

Startup costs for a hardware store range from $85,000 to $120,000. The largest cost by far is the inventory. Other costs include the space rental and preparation. 

Alternatively, you could sharply reduce the initial costs by starting out with an online hardware store before opening a physical location. 

How much can you earn from a hardware store business?

Prices for items sold will obviously vary. These calculations will assume that your average customer will spend $50 Your profit margin after cost of goods sold, rent, labor, and overhead, should be about 10%.

In your first year or two, you might have 30 customers a day, bringing in $547,000 in annual revenue. This would mean $55,000 in profit, assuming that 10% margin. As your brand gains recognition and your store becomes more well known, you might get 75 customers a day. With annual revenue of $1,370,000, you’d make an outstanding profit of $137,000.

What barriers to entry are there?

There are a few barriers to entry for a hardware store. Your biggest challenges will be:

• The high startup costs of inventory
• Facing a large number of competitors

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Step 2: hone your idea.

Now that you know what’s involved in starting a hardware store, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research hardware stores in your area to examine their products, price points, and customer reviews. You’re looking for a market gap to fill. For instance, maybe the local market is missing a small hardware store that offers DIY classes, or a hardware store that offers same-day delivery.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as plumbing supplies or power tools.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

Your products will be any number of hardware items, from nails to power tools. You can earn additional revenue by offering deliveries or holding DIY classes.

How much should you charge for hardware?

Prices will vary by hardware item. Typically, you should mark up your prices from wholesale prices to have a gross profit margin of 40%. After the costs of rent, labor, and overhead, your net profit should be about 10%. 

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be mainly homeowners and contractors. You should spread out your social media marketing to include TikTok, Instagram, Facebook, and LinkedIn.

Where? Choose a hardware store location

To choose the ideal hardware store location, start by researching the local market to pinpoint areas with strong demand for your products.

Opt for a location with good visibility, easy access by car and public transportation, and ample parking.

Ensure the chosen site has sufficient space for product display, storage, and customer flow.

Lastly, consider the competition, safety, and neighborhood quality, as these factors contribute to attracting and retaining customers.

You’ll most likely need to rent out a storefront. You can find commercial space to rent in your area on sites such as Craigslist , Crexi , and Instant Offices .

Step 3: Brainstorm a Hardware Store Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “hardware” or “hardware store”, boosts SEO
• Name should allow for expansion, for ex: “Ace Hardware Co.” over “Plumbing Parts Palace”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Hardware Store Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: A brief summary outlining the core elements of the hardware store business plan, including its mission, goals, and key financial projections.
• Business Overview: An overview of the hardware store business, including its mission statement, location, legal structure, and a brief history or background.
• Product and Services: A detailed description of the hardware products and services the store will offer, emphasizing the unique selling points and value proposition.
• Market Analysis: An examination of the target market for the hardware store, including demographics, market size, trends, and potential opportunities and challenges.
• Competitive Analysis: An assessment of the hardware store’s competitors, identifying strengths, weaknesses, opportunities, and threats in the market.
• Sales and Marketing: A plan outlining how the hardware store will attract and retain customers, including marketing strategies, sales tactics, and promotional activities.
• Management Team: Profiles of key individuals responsible for managing and operating the hardware store, highlighting their qualifications and roles.
• Operations Plan: Details on how the hardware store will operate on a day-to-day basis, covering inventory management, suppliers, facilities, and other operational aspects.
• Financial Plan: A comprehensive financial projection for the hardware store, including startup costs, revenue forecasts, profit and loss statements, and cash flow projections.
• Appendix: Supplementary materials that provide additional information, such as resumes of key team members, detailed market research data, and any other supporting documents.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to hardware stores. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your hardware store will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a hardware store business. 

Step 8: Apply for Hardware Store Business Licenses and Permits

Starting a hardware store business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your hardware store business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks. 

You may want to use industry-specific software, such as  LS Retail ,  Vend , or  Retail Pro , to manage purchasing, inventory, and invoicing.

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

For your hardware store, the marketing strategy should focus on showcasing the variety and quality of your products, your expertise in home improvement and DIY projects, and your commitment to customer service. Emphasize any unique offerings like specialized tools, local products, or services such as tool rental or repair. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding : Your branding should convey reliability, quality, and expertise. This includes your store’s signage, logo, staff uniforms, and overall store layout and design.
• Direct Outreach : Network with local contractors, tradespeople, and DIY enthusiasts. Offer workshops or training sessions at your store to draw in these customers.

Digital Presence and Online Marketing

• Professional Website and SEO : Develop a website that lists your products, services, and store information. Use SEO best practices to rank for local searches related to hardware stores, home improvement, and DIY projects.
• Social Media Engagement : Utilize platforms like Facebook, Instagram, and YouTube to showcase your products, share DIY tips, and highlight customer projects.

Content Marketing and Engagement

• DIY Blog or Video Series : Share informative content about home improvement projects, tool usage tips, and DIY ideas. Video content can be particularly engaging and useful for demonstrating how to use certain tools or complete specific projects.
• Email Newsletters : Regular newsletters can inform your customers about new products, upcoming workshops, and special promotions.
• Expert Advice and FAQs : Offer expert advice sections or FAQs on your website to help customers with their DIY queries and position your store as a knowledgeable resource.

Experiential and In-Person Engagements

• In-Store Workshops and Demonstrations : Host regular workshops or live demonstrations on various home improvement topics to attract customers to your store and engage with them directly.
• Community Events : Participate in or sponsor local community events to increase brand visibility and connect with potential customers.

Collaborations and Community

• Partnerships with Local Businesses : Collaborate with local contractors and home service businesses for mutual referrals. Partnering with local craftspeople or manufacturers can also diversify your product offerings.
• Local School and Community Projects : Engage in local school projects or community building projects, providing materials or expertise.

Customer Relationship and Loyalty Programs

• Loyalty Rewards Program : Implement a program offering discounts, points, or special perks to regular customers.
• Contractor and Tradesperson Discounts : Offer special discounts or accounts for professional contractors and tradespeople to encourage repeat business.

Promotions and Advertising

• Targeted Local Advertising : Use local newspapers, radio, community boards, and online platforms to advertise your store and any special promotions or events.
• Seasonal Promotions and Sales : Take advantage of seasonal cycles in home improvement and gardening to offer relevant promotions and sales.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your hardware store meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your hardware store business could be: 

• Your hometown hardware store has you covered! 
• All the hand and power tools at great prices
• Your #1 resource for DIY projects 

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a hardware store, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in hardware stores for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in hardware. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a hardware store business include:

• Store Clerks – make sales, customer service
• General Manager – scheduling, ordering, inventory management, accounting
• Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Hardware Store – Start Making Money!

Good old-fashioned hardware stores are an important part of any community. Many people prefer the small local shop, rather than going into a store that looks like a giant warehouse and getting lost. If you have a passion for tools and DIY, you could create a community hardware store, provide value to customers, and start building your hardware empire! 

You’ve got business knowledge in your toolbelt now, so it’s time to hit the ground running and start your successful hardware store. 

• Hardware Store Business FAQs

Yes, hardware stores can be very profitable. The key is to offer a variety of hardware items and provide great customer service that will keep people coming back.

The biggest hardware store company is The Home Depot, followed by Lowe’s and Menards.

A successful hardware store typically offers a wide range of products, excellent customer service, knowledgeable staff, fair pricing, and a convenient location. Additionally, successful hardware stores may provide additional services such as equipment rental, repair or installation services, or educational workshops and events.

To differentiate your hardware store from competitors, you could focus on providing a personalized and consultative approach to customer service, offering unique or specialized products, using eco-friendly and sustainable practices, or providing additional services such as delivery or installation. You could also consider partnering with local businesses or community organizations, hosting events or workshops, or using targeted advertising to attract new customers and encourage loyalty.

Effective marketing and advertising strategies for promoting your hardware store could include creating a strong online presence through social media and a user-friendly website, offering promotions or discounts to attract new customers and encourage loyalty, hosting events such as DIY workshops or tool demonstrations, using visual merchandising and signage to create an inviting and attractive shopping environment, and offering exceptional customer service to encourage positive word-of-mouth referrals. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Hardware Store Name
• Create a Hardware Store Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Hardware Store Business Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Hardware Store - Start Making Money!

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How to Start a Profitable Hardware Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a hardware business plan., 3. develop a hardware brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for hardware., 6. open a business bank account and secure funding as needed., 7. set pricing for hardware services., 8. acquire hardware equipment and supplies., 9. obtain business insurance for hardware, if required., 10. begin marketing your hardware services., 11. expand your hardware business..

Beginning a hardware business requires a comprehensive understanding of the market landscape to identify opportunities and challenges. A market analysis will enable you to gauge demand, competition, and potential customer base. Here’s how to proceed:

• Research your target market by collecting data on demographics, spending habits, and needs to understand who your customers are and what they're looking for.
• Analyze local and regional competitors to assess their product offerings, pricing, strengths, and weaknesses to find your unique selling proposition.
• Investigate industry trends and future predictions to align your business strategy with where the market is headed.
• Utilize government and industry reports for statistics and market insights that can help in making informed decisions.
• Conduct surveys, focus groups, or interviews with potential customers to get direct feedback on their preferences and willingness to purchase.
• Assess suppliers and distributors to determine the best partners for your business in terms of quality, cost, and reliability.
• Examine regulatory requirements to ensure compliance with local, state, and federal laws that may affect your business operations.

Are hardware businesses profitable?

Yes, hardware businesses can be highly profitable. When done properly, hardware businesses can earn a significant return on investment with relatively low overhead costs. Successful hardware businesses typically focus on expensive, high-end products with a large market and strong demand, or on niche products with high margins and loyal customers.

Starting a hardware business requires careful planning and a solid business plan. This document will serve as your roadmap, outlining the strategies for success, financial projections, and the structure of your business. Below is a guide to drafting an effective hardware business plan.

• Begin with an executive summary that encapsulates your business goals, target market, and competitive advantages.
• Define your business structure, including ownership, management team, and operational strategy.
• Conduct a market analysis to understand your competition, identify your customer base, and determine market trends.
• Outline your product line, detailing the types of hardware you will offer, your suppliers, and your inventory management system.
• Develop a marketing and sales strategy that includes pricing, promotions, sales channels, and customer service.
• Provide detailed financial projections, including start-up costs, revenue forecasts, profit and loss estimates, and cash flow analysis.
• Address any regulatory requirements, licensing, and insurance needed to operate legally and safely.
• Include an appendix for supporting documents, such as resumes of the management team, legal agreements, and detailed market research data.

How does a hardware business make money?

Hardware businesses make money by selling tools and supplies to their target customers. For example, a hardware business selling supplies and equipment needed for an air duct cleaning business might target professional residential cleaners and commercial building owners. This hardware store could offer a variety of items such as brushes, vacuums, hoses, seals and special chemicals needed for air duct cleaning. With a wide selection of items available at competitive prices, the store would be able to attract customers looking for quality supplies for their air duct cleaning business.

Creating a strong and recognizable hardware brand is crucial for your business success. It's about more than just a logo; it's about building a reputation for quality, reliability, and innovation that resonates with your target audience. Here's how to develop a hardware brand:

• Define Your Unique Selling Proposition: Identify what makes your hardware products stand out from the competition. Emphasize these features in your branding to attract customers.
• Choose a Memorable Name and Logo: Select a brand name and design a logo that is easy to remember, yet reflects the quality and reliability of your hardware products.
• Establish Brand Values and Personality: Decide on the core values and personality of your brand. Are you innovative, eco-friendly, or customer-centric? Let these values guide your interactions and communications.
• Create a Consistent Visual Identity: Use consistent colors, fonts, and design elements across all marketing materials to create a cohesive look that customers will recognize.
• Promote Your Brand Story: Share the story behind your brand, including the inspiration for starting your hardware business and your vision for the future, to create a personal connection with your customers.
• Engage with Your Audience: Build relationships with your customers through social media, customer service, and community engagement to foster brand loyalty.

How to come up with a name for your hardware business?

Coming up with a name for your hardware business can be exciting yet overwhelming. It is important to consider the overall purpose of your business, what type of hardware you intend to offer, and your target audience when selecting a name. Research existing businesses in the industry, as well as potential names to ensure you don't select something that is already in use. When selecting a memorable and catchy name, try to involve a compelling story or feature of the business within it. Lastly, make sure you research potential trademark issues related to the name prior to finalizing it.

Registering your hardware business is a critical step that will legitimize your venture and enable you to operate legally. This process varies depending on your location, but generally involves a few key steps to ensure that your business is compliant with local laws and regulations. Follow these guidelines to formalize your business registration:

• Choose a unique business name and check its availability with your government's business registry to ensure that it's not already in use.
• Decide on a legal structure for your business (sole proprietorship, partnership, LLC, corporation, etc.) as this will determine your liabilities, tax obligations, and the amount of regulatory paperwork required.
• Obtain an Employer Identification Number (EIN) or the equivalent in your country, which is necessary for tax purposes and to open a business bank account.
• Register your business with the local or state government to get a business license or permit, as required for hardware stores. Check for specific hardware business regulations in your area.
• Consider any additional licenses or permits specific to the hardware industry, such as those related to selling certain types of equipment or handling hazardous materials.
• Keep all registered documents and certifications accessible as you may need to present them for various business activities and banking procedures.

Resources to help get you started:

Explore critical resources designed for hardware entrepreneurs looking for market trends, operational best practices, and strategic business growth tips:

• Crunchbase: A comprehensive platform for discovering industry trends and tracking startups and investments. https://www.crunchbase.com
• CB Insights: Offers in-depth reports and analyses on various sectors, including hardware, to understand market dynamics. https://www.cbinsights.com
• Make: Magazine: Provides a blend of hardware project ideas, DIY guides, and business tips for hardware startups. https://makezine.com
• Hackaday: A community and blog for hardware hackers, offering insights on emerging hardware trends, projects, and tips. https://hackaday.com
• Hardware Massive: A global platform and community for hardware startups featuring events, webinars, and networking opportunities. https://hardwaremassive.com
• The Hardware Startup: Building Your Product, Business, and Brand: A book offering strategic advice on launching a hardware startup, from prototyping to scaling. Available on Amazon.

Starting a hardware business involves navigating through various regulations to ensure compliance with local, state, and federal laws. Acquiring the necessary licenses and permits is a critical step to legally operate your business and avoid any potential fines or legal issues. Below is a guide to help you through this process:

• Research local business licenses: Contact your city or county government to determine the specific business licenses required to operate a hardware store in your area.
• Obtain a sales tax permit: If your state collects sales tax, you will need to register for a sales tax permit with your state's Department of Revenue or equivalent authority.
• Check for specialized permits: Depending on the products you sell, you may need additional permits, such as those for selling hazardous materials or operating heavy machinery.
• Apply for an Employer Identification Number (EIN): If you plan to hire employees, you'll need an EIN from the IRS for tax purposes.
• Ensure zoning compliance: Verify that your business location is zoned for retail and specifically hardware sales.
• Comply with environmental regulations: Hardware stores often deal with chemicals and substances that require adherence to environmental safety standards set by the EPA or state agencies.
• Stay informed about renewals: Keep track of when each license or permit expires and the process for renewal to maintain continuous compliance.

What licenses and permits are needed to run a hardware business?

To run a hardware business, you will need to obtain various types of licenses and permits, such as a business license, zoning permit, tax license, special permits for hazardous materials and air quality, building permit, seller's permit, and health and safety permits. Additionally, depending on the type of products being sold, specialty licenses may be required for things like firearms or flammable materials. It is important to research the specific requirements for your area to ensure that your business is in compliance with all local, state and federal regulations.

Starting a hardware business requires careful financial planning and management. A crucial step in this process is opening a business bank account to keep your personal and business finances separate. Additionally, securing the necessary funding to cover your startup costs and operational expenses is vital for the success of your business. Follow these guidelines:

• Research banks that offer business banking services and compare their account options, fees, and features to find the best fit for your hardware business.
• Prepare the required documentation, which typically includes your business registration papers, EIN (Employer Identification Number), and personal identification.
• Open your business bank account by visiting a branch or completing the process online, depending on the bank's offerings.
• Explore various funding options such as small business loans, lines of credit, investor funding, or crowdfunding platforms to raise the capital needed.
• Prepare a solid business plan to present to potential lenders or investors, highlighting your business model, market analysis, financial projections, and how you intend to use the funds.
• Consider the Small Business Administration (SBA) loans or local grants for new businesses, which might offer more favorable terms for startups.

Establishing the right pricing for hardware services is crucial for the success of your hardware business. It's important to find a balance that reflects the value of your services while staying competitive in the market. Consider the following points as you set your pricing:

• Cost-Plus Pricing: Calculate the total cost of providing your service, including parts and labor, and add a markup percentage to ensure a profit.
• Market Rate Comparison: Research what competitors charge for similar services to ensure your prices are in line with the market.
• Value-Based Pricing: Price your services based on the perceived value to the customer, especially if you offer specialized expertise or benefits.
• Volume Discounts: Consider offering discounts to customers who purchase services in bulk or sign long-term contracts, to encourage larger sales.
• Dynamic Pricing: Be open to adjusting your prices based on demand, seasonal trends, or the introduction of new technologies and services.
• Transparent Pricing: Make sure your pricing structure is clear and understandable to avoid confusion and build trust with customers.

What does it cost to start a hardware business?

Initiating a hardware business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $200000 for launching such an business. Please note, not all of these costs may be necessary to start up your hardware business.

Starting a hardware business requires careful consideration when it comes to acquiring equipment and supplies. It's essential to procure high-quality items that meet your customers' needs while also ensuring cost-effectiveness. Below are key points to guide you through this crucial step:

• Research your market to understand the demand for specific hardware products and identify the most sought-after items.
• Choose reliable suppliers with good track records for quality, delivery, and service. Consider establishing partnerships or accounts with wholesalers for better pricing.
• Consider the balance between cost and quality when purchasing inventory. Higher-quality items may offer better long-term value to your customers.
• Invest in a robust inventory management system to track your stock levels, sales patterns, and reorder times.
• Ensure that your storage facilities are adequate to preserve the quality and integrity of your hardware supplies.
• Include essential tools and machinery for demonstrations, repairs, or value-added services you plan to offer.
• Don't forget about office and operational supplies, such as computers, point-of-sale systems, and office furniture.
• Plan for safety equipment to protect your employees and comply with local regulations.

List of software, tools and supplies needed to start a hardware business:

• Hardware equipment (starting from $500 - $10,000 depending on the size of the business and the type of hardware)
• Toolboxes and hand tools (between $50 -$500)
• Workbenches, tables and chairs (around $200-$1000)
• Software for hardware inventory, sales & ordering ($30-$200/month depending on features)
• Computer hardware (between $500 to $3000)
• Software for client management (around $12-$50/month)
• Wireless internet connection ($25-$150/month depending on provider and speed
• POS system with receipt printer, scanner & credit card reader (around $170 - $1000)
• Office supplies & stationery ($50 -$200 depending on quantity)
• Storage solutions (shelves and filing cabinets) ($50 to $500 depending on size and features)

Securing the right business insurance is a crucial step in protecting your hardware business against unforeseen events. It is essential to understand the different types of insurance available and determine which ones are necessary for your specific business needs. Consider the following points when obtaining business insurance:

• Evaluate the risks associated with your hardware business to identify the types of insurance that are most applicable, such as property insurance, liability insurance, or product liability insurance.
• Consult with a licensed insurance agent who specializes in commercial policies to get professional advice tailored to your industry.
• Compare quotes from multiple insurance providers to find the best coverage options at a competitive price.
• Ensure that your policy covers all essential aspects of your business, including inventory, equipment, and potential business interruptions.
• Review and understand the terms and coverage limits of your policy to make sure you are adequately protected against claims or damages.
• Consider additional coverage options such as cyber liability insurance if your business operations involve online transactions or data storage.
• Keep your insurance policies up to date and review them annually or whenever there are significant changes to your business operations.

Now that your hardware services are ready to be offered to the public, it's crucial to get the word out to your target market. Marketing your services effectively will help you build brand awareness, attract customers, and differentiate your offerings from competitors. Here are some strategies to kickstart your marketing efforts:

• Develop a strong online presence by creating a professional website and engaging on social media platforms where your potential customers are active.
• Offer promotions and discounts to first-time customers to encourage them to try your services.
• Network with local businesses and attend industry events to build relationships and gain referrals.
• Invest in search engine optimization (SEO) to improve your visibility on search engines and attract organic traffic.
• Use targeted advertising through Google Ads, social media ads, or local print media to reach potential customers effectively.
• Collect customer testimonials and reviews to build trust and credibility with potential clients.
• Partner with other businesses that offer complementary services to cross-promote each other and expand your customer base.

Expanding a hardware business is a critical step that requires strategic planning and execution. It's an opportunity to build on existing successes and capture new market segments. Here are some key points to consider as you plan to grow your hardware business:

• Assess Market Demand: Research to identify potential new markets and customer needs that your business can fulfill.
• Diversify Product Lines: Explore expanding your product offerings to include complementary goods or services that align with your brand.
• Invest in Technology: Utilize modern inventory management systems and e-commerce platforms to streamline operations and extend your reach.
• Strengthen Supply Chains: Forge strong relationships with suppliers to ensure reliable delivery and competitive pricing.
• Enhance Marketing Efforts: Increase your marketing budget to raise brand awareness and reach a wider audience. Consider online and offline strategies.
• Expand Sales Channels: Look into opening more physical locations or expanding online sales channels to access new customer bases.
• Optimize Operational Efficiency: Review and improve internal processes to reduce costs and improve customer service.

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How to Start a Hardware Store in 5 Steps

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Starting a hardware store — a brick-and-mortar shop that sells, essentially, brick and mortar (and everything else you need to build a house, fix a leaky faucet, or paint the garage) — might seem daunting in this day and age.

Smaller hardware stores, like small businesses in every industry, face cutthroat competition, not just from other local businesses but big box stores like Home Depot and e-commerce giants like Walmart and Amazon.

But if you have the expertise and passion for opening a hardware store, don’t get discouraged. You can actually control a number of factors to maximize your potential for success. Review these five steps in how to start a hardware store before you get your business started to see if you have a good shot at staying afloat.

What you need to know about starting a hardware store

According to IBISWorld, there are nearly 20,000 hardware stores in the United States today, producing about $24 billion in revenue and employing just over 148,000 people.

Its analysis of the industry is in line with something you may have noticed if you’re interested in getting into the business: As the economy has improved over the last five years, the housing market has strengthened, leading to an increase in the number of home improvement projects that require trips to the hardware store.

Additionally, low mortgage rates have encouraged people to buy and renovate homes, putting countrywide brands like True Value and Ace Hardware in a good position to capitalize.

The report does note that hardware store growth is expected to slow a bit in the next five years, but the overall industry does have a positive outlook.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

How to start a hardware store in 5 steps

1. decide between opening your own hardware store or starting a franchise.

There are lots of completely independent hardware stores around the country, catering to the ultra-local community. If you’ve identified a market where you feel you can think about starting a hardware store and become the near-exclusive provider for — and if you’re a control freak who wants to make 100% of the decisions about how your business operates — you might feel good about opening your own shop. Starting a hardware store on your own also requires less money.

There is, however, another option: starting a hardware store with a popular franchise , which provides you access to an established name, as well as a proven operational model and efficient supply chain. You can still be the owner of the store with plenty of latitude to make business decisions.

That’s the situation at Waverly Ace Hardware in Baltimore, Maryland, which is part of an independently run co-op within the fold of Ace Hardware stores.

According to Michael Marren, the assistant manager of one of the 11 Waverly Ace Hardware stores across Maryland, Washington, D.C., and northern Virginia, the relationship between the store and the parent company is helpful and fruitful.

“Our parent, A Few Cool Hardware Stores LLC, is based out of the District, and the name denotes the company philosophy rather well. We're a small business, our leadership is independent and local — but we have the benefit of Ace's logistical umbrella,” he says.

For example, Marren says that his company offers “well above minimum wage” and “a robust benefits package,” which he notes is a distinct choice that makes employees happier.

It’s also nice when you’re starting a hardware store within an established franchise to have a supply chain and the logistics of running the store all ready for you to utilize, rather than figuring it out on your own.

2. Write a business plan

Whether you go with a brand or strike out on your own, you should have a business plan that details how you’ll put your hardware store in the best position to succeed.

Important things to cover include:

Knowing your customer: What does your typical customer look like? Are they DIY landlords and contractors, or homeowners doing pet projects? Depending on who you’ll be catering to, the way your store is designed and the weight of your stock will change.

What your finances look like: How much do you need to start up? Once you do get going, what is your break-even point? What do you expect your cash flow to be like on a monthly basis? If you’re joining an established brand, IBISWorld notes you need a minimum of $150,000 unencumbered cash available for investment in a True Hardware, while Ace requires between about $820,000 and $1.5 million — the total depends on how big your store will be and other factors.

Your marketing plan: If you join a national brand, you’ll have access to all kinds of programs and events you can use to boost your profile. But you should also consider local, perhaps even offline marketing campaigns, loyalty programs for repeat customers and a flexible national catalog program.

Location: This one is a no-brainer. You’ll want somewhere with a lot of foot traffic that doesn’t cannibalize the business of other stores — or put you in a position to be cannibalized in return.

3. Invest in supplies and excellent customer service

According to IBISWorld, the three most important factors for success are the ability to control stock on hand, an experienced workforce and having a loyal customer base.

These are sentiments that Marren echoes when discussing why people come to his hardware store, as opposed to shopping online with Amazon or hitting a big box store.

“In my view, people come to us for interaction, information, personalization, and proximity. We're closer, friendlier, and we'll actually help you when you come in,” he says.

But even the friendliest store associates can’t do anything for customers if what the customers need isn’t in stock.

“The first rule of customer service is having the thing that someone wants to buy,” says Marren. “Invest in inventory and point of sale software that can analyze the stock and keep your inventory responsive.”

IBISWorld says that challenges to starting a smaller hardware store revolve around competition — mainly those larger retailers and home improvement stores. Marren agrees, noting that bigger stores have an economy of scale that gives them an edge.

So, if you can’t beat the bigger stores on price, you need to beat them with better, more helpful, happier employees. Keeping those employees happy (e.g., with the benefits package Marren described) will go a long way toward gaining the loyalty and quality effort you need to succeed.

4. Obtain the necessary permits, insurance and a business bank account

You’ll need to register your business with your secretary of state, apply for a business tax identification number (also known as an employer identification number, or EIN) from the IRS, and open a business checking account .

Establish revolving lines of credit with your hardware distributors as well as with your financiers, if you have them, whether they are traditional banks or online lenders.

Depending on where you’re setting up shop, you may need specific local, state and city permits — and you might want to visit with an attorney or accountant familiar with local standards to make sure you’re in compliance.

Finally, get the right business insurance: If you have employees (and it’s doubtful you’ll be running one of these stores all on your own), you need workers' compensation insurance — a commercial insurance policy that covers the store inventory against loss or injury claims from customers.

Start Your Dream Business

5. Adapt your inventory, marketing and staffing

Your hardware store will hardly be a static entity. As the homeownership market changes, the seasons shift, or new challenges (and challengers) enter the scene, you’ll need to adapt your inventory, marketing campaigns, and staffing needs.

What should remain consistent is that you:

Continue to maintain inventory levels so that you’re never out of stock at a crucial moment.

Your commitment to keeping your staff informed and engaged is unwavering.

Always look to growth within your niche rather than overextending yourself.

As Marren puts it: “We take a more ecological view of the market — we fit a niche. We're not in the business of putting other local stores out of business.”

After all, since you’re starting a hardware store, you’re in the business of helping people improve their homes, and by extension, their lives. Conduct your business appropriately.

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Starting a Hardware Store Business in South Africa – Business Plan (PDF, Word & Excel)

Posted by BizBolts | All Articles , Business Ideas , Business Plans , Retail Industry

Hardware stores in South Africa provide a variety of goods like building materials, plumbing supplies, electrical products, tools, and hardware equipment. A hardware store is a very lucrative business to start in South Africa, with huge profits. Hardware stores cater for both large and small projects. These projects range from small home improvements to big construction projects. The tools and materials needed to complete these types of projects are available at hardware stores. Setting up a hardware store can be a very rewarding experience. However, it is critical to remember that in order to be successful in the long run, you must constantly expand your business. These days, hardware stores have to offer more than just tools and building supplies. It is important to find ways to differentiate your shop from the competition to draw customers’ attention to your business. This article will outline how to start a hardware store business in South Africa, and the hardware store business plan – PDF, Word and Excel.

Market Research

It’s important that you carry out market research before you start the hardware store business. Important decisions to make include deciding on the location of your business, the products you will offer, your target market and the size of your business. Understand your target market, and what kind of products they want. Assess the competition at your proposed location. You should always carry out a feasibility study, market research and write a business plan before you venture into any business. Do not make the mistake of starting a hardware store business before carrying out research and without a good hardware store business plan.

When setting up a hardware store, you need to understand your customers. If you do not understand your customers, you will have a hard time making informed decisions on where to open your business, where to locate your store, and the right hardware products to sell. You must know who your customers are, and why they would buy from you. When conducting market research, look for common characteristics and interests among the people you intend to target. Gather as much information as you can about your potential clients. Some important factors to consider include their age in terms of generation, where they live, and their spending habits. This will help you understand which geographic areas to target and figure out what hours are most important for your customer service and sales reps to be available. That information will help you schedule your marketing promotions offline and online to ensure the best visibility. Understanding spending power and patterns will help you set competitive prices for your hardware products. You must also learn about your potential clients’ hobbies and interests, especially if they are DIY junkies or only buy hardware products when something is broken. Understanding their interests will also help you find ways to keep your clients engaged.

Hardware store Business Model

A hardware store typically sells hand and power tools, building materials, fasteners, keys, locks, hinges, chains, electrical supplies, plumbing supplies, cleaning products, housewares, utensils, and paint. The products and services your hardware store will offer can range from small nails to power tools. To make more profits, you can earn additional revenue by delivering these products to your customers or by holding DIY tutorials. When looking for customers, consider homeowners, contractors, and DIY consumers. Take advantage of social media marketing by posting videos on TikTok, Instagram, Facebook, and LinkedIn. It is much easier to attract these kinds of customers, who will need to source supplies for their projects. You can also set up trade accounts with local tradesmen to earn consistent business. Making your business more profitable would mean supplementing your main source of income with other services. You can partner with a local carpenter and offer installation services in addition to the carpeting products you sell. You can also do this for windows, doors, roofing, or any other major project.

Location & Premises

Business premises that have a high ceiling are ideal for hardware stores to create ample storage space. The premises also need to be quite spacious in terms of width, you might have to use a forklift to move large and heavy building materials. The space needs to be large enough to fit all your products. Your premises should also be easily accessible by trucks, as this creates convenience when delivering your products from suppliers or when customers are collecting their products.

Location is an important decision to make, and it’s determined by your target market. There are several places when you can locate your hardware store. People are always looking to improve their homes by extending them or renovating them. Residential areas are ideal places to set up shop. A hardware store at a residential area will need you to understand your market so that you can offer exactly what they need. Explore unlikely locations such as rural areas. Houses are expensive and land is also expensive in urban areas some have resorted to building their dream houses at rural areas where land is ample and building is much cheaper. Rural areas that still don’t have electricity and running water have less construction and developments happening compared to rural areas with electricity and running water. There are new development projects that take years to complete due to the amount of construction and the amount of work involved. The work is mostly completed in phases and can take up to 8 years to complete. Opening a hardware store close to a new development project can prove to be lucrative. Your hardware store business plan should cater for the costs of renting or buying premises.

Products for Hardware Store Business

Hardware shops in South Africa sell a variety of products including building materials, plumbing materials, tools, safety materials, agricultural equipment and electrical products. Examples of hardware products include Brickforce , Cement, Door Frames, Window Frames , Doors , Glass, Asbestos , Ceiling Products , Tiles, Abrasives , Adhesives , Brushware, Hinges , Nuts, Bolts, Nails, Screws,  Sockets , Cables, Fencing & Wire , Lawnmowers , Wheelbarrows , Hoses, DIY Hand Tools , Screwdrivers , Spanner Sets , Paint, Water Tanks, Timber Boards, Bathroom Accessories, Toilet Seats , Safety Boots & Shoes, Pipes, Hand tools,  Power tools,  Garden tools etc. The kind of products which you sell will depend on your targeted market and the amount of capital which you have. The products can be sourced from South Africa manufacturers, Distributors and International Suppliers. 

Inventory Management

Taking control of your stock is an important part of running any kind of business that handles inventory. If you do not get that right, it will negatively impact your profit margins. For a hardware store business, you need stock control software that is especially built for your industry. In order to get the best possible results for your business, your stock management software should work seamlessly with both your point of sale and accounting functions. This will help you efficiently and accurately track the movement of stock through your hardware store. Consider an efficient inventory management software for your hardware store that can highlight areas of your business for improvement. Inventory management will help you prevent employee theft and keep track of your inventory. A proper stock management for hardware stores will enable your company to track best-selling versus underperforming products. This way you can analyze your sales and profits and potentially revise any pricing strategies that aren’t generating maximum profit.

Competitive Analysis

When you open a hardware store, you will be competing with a number of other stores, all of whom are vying for the largest market share. In order for you to stand out, you need to conduct a market analysis. You must know who your direct and indirect competitors are, as well as the products and services they offer, and who their customers are. You must find out what your competitor’s strengths and weaknesses are. A competitive analysis will also assist you in figuring out where you fit in the market. There are a number of opportunities that you can take advantage of, which a competitive analysis can help with. You need to figure out where there are gaps within the hardware market. There are various big and small hardware stores in the country that you will compete with, so it is important to conduct a competitive analysis and find your place in the market.

Staff & Management

The number of employees you need will depend on the size of your hardware store business. The is need for finance/accounting personnel who will be responsible for all the day to day transaction accounting for the hardware store business. This will include the tracking of all transactions and the management of cash flow, and ensuring there are enough funds available to meet the day to day payments.

Operations & logistics personnel are responsible for coordinating with suppliers and sourcing all the products which will be sold in the hardware, and arranging delivery of sold products to customers. They are also responsible for inventory control, ensuring that the shop has all the products in stock and in the right quantities, and determining when to place new orders. You also require cashiers and hardware shop assistants. Your hardware shop business plan should cater for the salaries of your employees.

Knowledgeable staff members will add value to your team by helping the customers buy the correct products. There is a wide range of products available at hardware stores, customers often get confused. Anyone can easily find themselves making small blunders such as purchasing wall tiles instead of floor tiles. If you have inexperienced staff members on your team their training program should focus more on learning about the different products sold in the store so they are able to give informed advice to customers.

Sales and Marketing Plan

There are different kinds of hardware stores that sell various products, and then there are stores that specialize in specific types of hardware, such as plumbing supplies or electrical products. One way to stand out is by specializing in a specific type of hardware product. You can make your store more appealing to customers looking for a particular kind of product. This can also make your store more efficient by stocking specific products you need. Another way to make your hardware store business stand out, is by offering products that your customers can’t find at other stores. Providing unique or hard-to-find products can help you set your store apart from the competition and attract new customers looking for specific products. It can also help you create a sense of exclusivity, making your store more appealing to customers. You can also do this by catering to a specific audience. This could be focusing on customers looking for high-end products or catering to a specific demographic, such as do-it-yourselfers or professional contractors. By focusing on a specific audience, you are able to create a more targeted marketing strategy and better understand your customers’ needs. This will help you improve your store’s product selection as well as create a more enjoyable shopping experience for your customers.

A hardware business has multiple sources of customers, these include; building & civil construction, home and business renovations, small DIY projects, agriculture, and maintenance work. All these projects can’t be completed without a hardware store. This type of business has the advantage of offering services to a market that’s totally dependent on it. Having a reliable market makes you feel more secure and confident, you feel less anxious about the possibilities of failure. You already have a reliable market, it’s all up to you to make sure that you are ahead of your competition. Studying what your competitors do with the intention to see what you can do better will help you get ahead.

Many individuals are constructing houses in South Africa, and are always in need of the building materials.   From time to time individuals carry out improvements, repairs and upgrades on their properties, and this requires hardware products. Other potential customers include farmers, organisations, schools, companies, construction companies, housing cooperatives and the government.

PRE-WRITTEN HARDWARE STORE BUSINESS PLAN (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

For an in-depth analysis of the hardware shop business in South Africa, purchase our hardware store business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the hardware business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a hardware shop business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the hardware shop business plan will lay out all the costs involved in setting up and running the hardware business. The business plan is designed specifically for the South African market.

USES OF THE HARDWARE SHOP BUSINESS PLAN (PDF, WORD AND EXCEL)

The hardware store business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your hardware shop business
• As a hardware store project proposal
• Assessing profitability of the hardware stores business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE HARDWARE STORE BUSINESS PLAN (PDF, WORD AND EXCEL)

The business plan includes, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some South Africans in the hardware business fail, so that you can avoid their mistakes
• Ways to raise capital to start your hardware store business in South Africa
• Directory (Contact details of hardware products suppliers)

The Hardware Store Business Plan package consist of 4 files

• Hardware Store Business Plan – PDF file (Comprehensive – 83 pages)
• Hardware Store Business Plan – Editable Word File (Comprehensive – 83 pages)
• Hardware Store Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 48 pages)
• Hardware Store Business Plan Automated Financial Statements – (Editable Excel file)

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Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

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The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

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I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

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The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

GET THE HARDWARE STORE BUSINESS PLAN (PDF, WORD AND EXCEL) - R500 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 500 Rand.

We have several payment methods which you can use.

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Click  Buy Now  below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Visa Card/MasterCard then  click here: Business Plans Store

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

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Call/Whatsapp us on +27606334830 for the other payment methods. (Whatsapp us by clicking the link https://wa.me/27606334830 ). Email: [email protected] .

About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

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How To Start A Hardware Business Philippines

How to start a hardware business in the Philippines is a popular and great question to ask as there are many moving components to this business. Today we have broken down the process of starting a hardware business into 7 important stages.

Even though each stage is important, due to your circumstances, you may find that starting a stage earlier or postponing the stage to a later date is more appropriate for your situation.

Nonetheless, there are several stages with any business ; however, most businesses that succeed in the Philippines have a strong foundation so let’s take a look into how you can start a hardware business in the Philippines today.

Table of Contents

1. Build Your Hardware Plan

As you most likely know, hardware can take many different forms, some hardware businesses in the Philippines target specific items, whereas others are general hardware businesses. We will be speaking more on research in the following step but at this stage, building your foundations of what you want to sell and how much is essential.

Hardware businesses can also develop and expand as your business grows, so a plan is not set in stone but instead a rough guideline of what you would like to achieve and how you will achieve it. You can download your free business plan template for more information on starting a small hardware business in the Philippines.

Nonetheless , here are some areas to focus on at the very beginning stages of launching your new business

• Are There Similar Businesses Nearby?
• Are There Other Ways A Hardware Business Can Make More Money?
• How Long Will It Take My Business To Be Profitable?
• How Much Will A Hardware Business In The Philippines Cost Me?
• What Is The Profit Margin?
• What Items Will I Be Selling?
• What Would Give My Business The Competitive Edge?
• Who Will Manage The Hardware Store If I’m Not Available?
• Why Will Customers Buy From My Store And Not Anyone Else?

These questions may seem basic to some entrepreneurs who have had experience building multiple businesses, but if you are looking at how to start a hardware business in the Philippines, asking yourself these difficult questions can be very valuable.

In addition, you may wish to ask yourself some internal questions about starting a hardware business in the Philippines. Asking difficult questions often shows potential risks and problems which are best tackled at the beginning stages of a business instead of postponing risks until a later date.

2. Focus On Researching Hardware Businesses In Your Area

The next stage is a stage that you may wish to complete at the same time as your overall business plan as researching and creating a plan are closely tied together. In other words, you will often need one to complete the other.

One of the most important tasks, if you are targeting a local audience, is potential competition. This includes competition by traditional businesses and also online competitor providers such as Shopee , Lazada , etc.

Spending time on market research will also allow you, as an entrepreneur, to look into different opportunities to innovate your business. For example, how can your business be different from every other hardware business in the Philippines? What kind of offer could you give customers that would be profitable for you and irresistible for them?

If your time is limited, but you have available funds, you may wish to outsource this work to a full-time researcher. Fiverr is a great platform to find freelancers to help you at the beginning stages of a business. Researching is one task that can be outsourced, but there are many possible options for entrepreneurs who have limited time.

3. Find A Suitable Location

As a hardware business in the Philippines is a traditional business type, you will need a physical location to sell your items to the public. Therefore, at this stage, you will need to find a suitable location for your customers as well as a location that is beneficial for your business idea.

This means that you will need to find a location that is highly accessible but also offers everything that you need to start your business successfully.

Many businesses across the Philippines have spent a large amount of time streamlining their businesses. This includes both online and offline businesses, but why do they do this? Because the more difficult it is for a customer, the less likely it is for a customer to buy a product or service. This will then result in less profit and potentially stunted growth.

As an entrepreneur and a business owner of a hardware store, you will need to decide between accessibility and price, and this balance is not always easy.

You may also need to consider the local competition. If your hardware store is selling hardware that’s completely different from another hardware store, then there are no problems finding a location nearby but if you plan to sell similar items, then finding the location that is better than your competition could give you the competitive edge.

4. Source Funds (If Applicable)

The next stage when looking at how to start a hardware business in the Philippines is to find the capital. In fact, one of the most popular questions is how much does it cost to start a hardware store in the Philippines?

The total capital you will need to start a hardware business in the Philippines is 250,000 Pesos. However, this figure can slightly increase all decrease depending on your stock levels and location.

You may be able to negotiate with suppliers who can include a discount for multiple purchases or an “order now pay later agreement.” But whatever agreement is made, there is often a large amount of capital that is needed when starting a hardware business in the Philippines as some hardware stock can be relatively expensive.

Therefore how can you find the capital to start a hardware business in the Philippines? There are several options available to raise capital. The first way is through Angel investing, where others invest in your business in return for ownership of your business/profit, the second is through bank loans or private loans, and another option is through crowdfunding.

There are different pros and cons to each type of funding. It’s recommended to speak to an independent financial advisor and a business analyst at this stage. You will need to make sure that your business has enough money to become profitable and pay back any business loans.

5. Register Your Hardware Business In The Philippines

Registering a business in the Philippines is a process that will need to be initiated at some point in the journey. Registering the business name, obtaining mayor permits, and SSS are a few areas you will need to consider when registering a business.

We have spoken about the complete registration of a hardware business in the Philippines previously, so we will not go into too much detail today but MPM has a great article on the entire process of registering a business legally in the Philippines, which I have attached above for your reference.

6. Start Marketing Your Business & Build Awareness

Marketing is a big part of any business, especially a hardware business . As an entrepreneur, you will have to convince members of the public to shop in your store. Not only will you need to convince them to shop, but you will also need to build the groundwork so that you can generate repeat business for the years to come.

Marketing is a great way to build awareness of your business and your products. Marketing awareness is a larger umbrella of marketing that is often used when a business launches a product or starts a brand new company.

Similar to many areas of starting a hardware business, you will need to balance your financial investment in marketing and the return of that investment. 

One benefit of starting a small hardware business in the Philippines is that competition is often lower due to the smaller market. Therefore, local search engine optimization can be part of your strategy to reach a larger market at a much lower price.

7. Reinvest Your Profits And Grow Your Hardware Business

You will have a registered business, product stock, marketing, and hopefully a small customer base at this point of your entrepreneurial journey, so what’s next? The final stage on how to start a hardware business in the Philippines is to reinvest your profits to grow your business.

One of the disadvantages of starting a traditional business is that profits can take a little longer than online businesses. This is because, with traditional businesses, you often need to pay for a location, physical stock, etc., but what you do with any business profits in the early days will significantly impact your hardware business in the future.

There is no golden ratio for profits and reinvestment. Some business owners prefer to withdraw profits from their business into their own bank account if this is the only source of income they have. But if you do not need the additional income, then it may be wise to reinvest your profits back into the business to help it grow much faster.

Reinvestment can take many forms. For example, you may wish to reinvest Into your products, staff, business operations, delivery services, marketing, work more with professional traders, or anything else that you feel would be a wise investment.

As someone who has spent many years building businesses and helping others develop their business, I have noticed that one of the key elements to growing a successful business is reinvesting profits in the right area.

Tips To Start A Hardware Business Philippines

Now that we have covered some essential stages on how to start a hardware business in the Philippines, the next important area is independent tips and tricks to help you in your new business venture.

1. Start Small. If you cannot start a large hardware business, then focus on building a small business in a great location. If you can sell a good level of stock and your location price is low, you should start to see profit very shortly.

2. Focus On The Essential Stock. During the research stage, you may come into several products that are selling exceptionally well. It may be a good idea to invest first into these popular items that you think will sell quicker. This will give you some much-needed income in the early days of business. If you can find an item in high demand but low supply, this is even better!

3. Seek Additional Assistance. Starting any business in the Philippines is not the easiest, but each business has its risks and also opportunities. Therefore you may benefit significantly by seeking advice from those who have had experience in the industry or have previously owned a hardware business.

4. Always Negotiate. As a business owner, your entrepreneurial mindset is critical. Negotiating with suppliers, balancing risk and reward will also be key. In today’s modern world, the most sophisticated and strategic businesses are the ones that often perform exceptionally well.

Is Starting A Hardware Business Right For You?

The last area to consider is whether starting a hardware business in the Philippines is the right decision for you or not? Unfortunately, even though this is one of the most important areas, it’s ironically one of the areas nobody can answer for you. Nonetheless, there are a few questions to answer to find the answer quickly.

You most likely have had experience building, fixing, and creating DIY projects, which is a great start but do you have the right entrepreneurial vision to create a successful hardware business in the Philippines? Also, do you have the right connections to build networks with traders in your area?

If the answer is yes, the next area to focus on is the daily activities of a hardware business owner. Do you have time to run a hardware business as well as all your other priorities in your life right now?

These kinds of questions are not to demotivate you from starting a hardware business in the Philippines. Instead, aim to encourage you to seek the answers to all business areas before taking a physical and/or financial action.

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Moscow International Business Centre (MIBC)

The Moscow International Business Centre (MIBC) is an ambitious engineering project in the centre of Moscow. The site is

Estimated Investment

$12 billion

Construction Started

Moscow, Russia

Project Type

Business complex (city within a city)

CITY JSC, Moscow City Government

The Moscow International Business Centre (MIBC) is an ambitious engineering project in the centre of Moscow. The site is on an old urban area near the river embankment. The goal of the project is to create a new business district within the city.

The whole complex is to be built on a 100ha site (divided into 30 plots) designated for new development on the Krasnopresnenskaya embankment. The management company for the project is CITY Joint Stock Company (CITY JSC), a company first set up in 1992 as a collaboration between the Russian government and private investors.

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The project was first launched in the early 1990s but has been stalled for much of the last 10 years due to a lack of investment. In 2003 the project started to attract investment again and has been gaining momentum ever since.

PLOT 1: BAGRATION BRIDGE AND TOWER 2000 OFFICE COMPLEX

The first major building constructed in the MIBC project on Plot 1 was the Bagration Bridge (pedestrian bridge) and mall, completed in 1999. The second project was the Tower 2000 office complex, a multi-use business complex begun in 1996 and completed in 2001. The building is 106m high and has 30 storeys above ground and four storeys below. The total floor area of the complex is 60,000m².

The underground area contains parking garages, restaurants, retail areas and a fitness centre. Floors 3–15 and 17–26 are business offices while floors 8 and 27 have a media centre, large exhibition hall and piano bar.

The business areas are served by structured cable network, fibre optic cable, satellite broadcasting, Wi Fi and ADSL Internet access, automatic digital telephone exchange with integration of services, local broadcasting system, municipal broadcasting network, electric timing system, data collection and processing system, audio and video systems, simultaneous interpreting system, conference system, video projection system and security systems including biometric access control and a monitoring system.

The tower also has a central air conditioning system, auxiliary exhaust ventilation system, cooler and heat supply systems, Uninterruptible Power Supply system (UPS), automatic fire security system, automatic volumetric fire-fighting system, sprinkler system and automatic smoke removal system.

The general contractor for the tower was Promstroytechnologia-M Company Ltd. The facade of the tower, which is made of glass and structured concrete, was constructed by Transwall Technology. The tower is equipped with 17 computerised rapid elevators, supplied and installed by Schindler Aufzuege AG, and an outer panoramic elevator, supplied and installed by Kone Lifts. The exterior lighting equipment was supplied and installed by Thorn.

PLOTS 2 AND 3: MOSCOW WEDDING PALACE AND CITY SQUARE

The sites designated by plots 2 and 3 are now to be developed as the Moscow Wedding Palace and City Square. This will include a city square, an underground retail complex and a 14 storey multipurpose complex, which will include the Wedding Palace, banquet halls, restaurants, shops and a hotel.

The developer is Capital City Developments. The architect is Mosproject – 2. The construction started in 2005 and is scheduled to be complete by the end of 2007.

PLOT 4: AQUAPARK

The Aquapark leisure complex was started in 2002 and was completed in 2005. The site occupies a 1.74ha area adjacent to Krasnopresnenskaya embankment. It includes:

• Complex of swimming pools, water mountains and leisure attractions, restaurants and cafes and retail areas (24,352m²)
• Five-star, 30-storey hotel complex (54,640m²) built on a six-storey podium containing retail areas, restaurants and nightclubs
• Parking to accommodate 425 vehicles (13,050m²)
• The aqua park will be connected with a mooring on the Moscva River

The developer of the complex was Aqua-City Palas Company Ltd. The project required an estimated investment of $230 million. The general contractor was Liard Stroy Ltd and the designers were Mosproekt-2 of Russia and Tkhomesto Engineering of Finland.

PLOTS 6, 7 AND 8: UNDERGROUND MALL AND METRO STATIONS

A large underground complex containing the central core of the MIBC, an underground mall and two metro stations is located on these plots. Construction started in late 2001 on the 5.1ha site and was completed in mid-2004. The complex has a total floor area of 150,000m² and includes:

• 35,000m² shopping mall
• 20,000m² multi-purpose performance complex
• 10,000m² dancing complex
• 15,500m² sports and leisure complex
• 30,000m² ‘Wonderful World of Entertainment’ theme park
• 7,000m² restaurant complex
• 30,000m² hotel

The complex developer was CITY JSC and the designers were Mosproekt-2. The construction engineers were Bovis Europe and Jones Lang Lassale of the UK.

PLOT 9: CAPITAL CITY PROJECT

This project involves the construction of two connected tower blocks and a dome. The towers will be of 73 and 62 storeys high, with a 16-storey domed building containing an atrium. Connecting the buildings will be a podium building with three storeys above ground and 4–6 below ground.

The lower levels of each tower will be for office space (200,000m²), while the upper levels (above 80m) will be residential and the dome will be used as a retail area. The investment for the project is $250 million.

The developer is Capital Group; the construction engineers are Bouygues Construction and the architects are Erick van Egeraat Associated Architects of Holland. Construction has been underway since 2005 and the project is scheduled for completion in mid-2007.

PLOT 10: NABEREZHNAYA TOWER

This project involves the construction of a new office and apartment complex consisting of three A-Class buildings 16 (86m), 27 (135m) and 52 (250m) storeys high, with a total floor area of 220,000m². The construction began in mid-2003 on the 2.55ha site with the smallest of the three buildings.

The first building was completed in autumn 2004. Enka, a Turkish construction company , is carrying out the development and construction. Enka has invested a total of $150 million so far. Work is continuing on the other two buildings with completion expected in 2007.

PLOTS 11 AND 12: MIXED-USE TOWER BLOCK

The major project on these plots will be a 300m, 75-storey, mixed-use tower block with over 204,000m² of floor space. The facilities will include commercial and government offices, residential areas, retail space, leisure and health centres and a four-star hotel.

Offices will occupy the floors 4–45, while apartments are on floors 48–66. The building was designed as a two-tier skyscraper, 30 floors in the first tier and 37 in the second one. The second floor of the building will be occupied by a casino. The 47th floor will be occupied by a gymnasium.

The designers for the project are Swanke Hayden Connell Architects and the investors are Techinvest, who are investing $270 million. The contractors for the construction are Summa, a Turkish development company. Groundwork was carried out by Kaskatas. Construction on the building started in the third quarter of 2004 with completion scheduled for late 2006.

PLOT 13: FEDERATION OFFICE COMPLEX

The Federatsiya (Federation) office complex is to consist of two towers, one 57 storeys high and the other 87 storeys (345m), and a podium. The 87-storey tower will hold offices and the 57-storey tower will include residential apartments and a hotel. The total floor area of the complex will be 240,000m².

The podium will have three to five levels and 30,000m² of floor space and will contain retail areas, banking facilities, cafes, restaurants and leisure facilities. The complex will have 14 lifts built between the two towers, including four ‘Shuttle’ round-observation lifts.

Stroimontage and NIKoil Financial Group will invest more than $500 million in the project. The architects for the project are P Schweger, S Tchoban and A Asadov of Germany. Stroimontage is the general contractor for the project. Construction started in April 2004 and the complex is scheduled for completion by 2008.

PLOT 15: CITY HALL AND DUMAS

Plots 2 and 3 are owned by the Moscow City Government and original plans were for the new City Hall and Dumas (Parliament) buildings to be located there. However, these buildings will now occupy Plot 15.

The construction on Plot 15 consists of four 70-storey interconnected 308.4m buildings. The project started in November 2005 and will be finished by the end of 2007.

It is expected that all government administration will be accumulated in the new complex to provide better organisation, allowing the buildings currently in use to be sold.

The four skyscrapers will be connected by several two storey bridges between towers and eight storey bridges at the top. The highest bridges will be built in shape of letter ‘M’ for ‘Moscow’.

PLOT 16: RUSSIA TOWER

Plans for a 600m-tall tower to be built in Moscow to designs by British architect Sir Norman Foster were released in March 2006. ST Towers is the developer behind the project and is part of the ST Group.

The Russia Tower will be more than 50% higher than the Empire State Building and is to be built within the Moskva-City development on Plot 16 near the site’s border with the Third Ring Road. It will overshadow the 430m Federation Tower under construction at Moskva-City, which developers say will be the tallest building in Europe when it is completed in 2008.

The 420,000m² tower is a striking design comprising three blade-like structures arranged in a trefoil-like plan around a central core and tapering sharply toward the top, with part of the steel structure exposed on the outside like an exoskeleton.

Described by the architect as a vertical city, the tower is to house parking and retail space on nine underground levels, a public ice rink on the first floor under a spacious, pyramidal atrium, a hotel with serviced apartments above, 24 floors of office, high-end apartments on the top levels and a public observation deck at the very top. The resident population of the tower could be 25,000.

The Russia Tower is billed as an environmentally friendly project, maximizing natural ventilation and lighting, with solar cells, the collection of rainwater and snow to reduce water demand and the recycling of energy between areas with varying levels of demand. In addition, atria several floors high are to be spaced throughout the building’s central core and decorated with plants, providing the luxury apartments on the upper floors with private gardens in the sky.

The construction of the tower is expected to cost about $1.5 billion; of this about $150 million to $200 million would be supplied by ST Towers. Plans for the tower have been approved and it should be finished by about 2010. Construction has not yet started.

PLOT 17 AND 18: MULTI-PURPOSE OFFICE-HOTEL COMPLEX

The multipurpose complex will include two towers (80 and 78 floors), with a common underground space for parking. The high tower will contain office premises and the second tower will be a hotel.

The complex will also contain a roof-top restaurant with a panoramic view, cafes and bars, conference halls and billiard club. The architect is Skidmore, Owinds, and Merrill LLP. No dates have yet been announced.

PLOT 19: NORTHERN TOWERS

An office complex is being developed on this plot by ZAO Severnaya Bashnya. The Northern Towers will consist of three buildings – two 12-storey and one 29-storey. These will contain 135,000m² of floor space.

The architect is Project Institute 2 and the construction engineer is Bau Holding Strabag AG (Austria). Interior design in the building will be carried out by ABD Limited, and legal services with regard to lease documents are provided by PricewaterhouseCoopers.

The first phase of Northern Tower is scheduled for shell and core delivery by the fourth quarter of 2006. The marketing and leasing campaign has already started. Raiffeisenbank has agreed to become the first tenant of the complex.

Northern Tower will feature spectacular atriums, prime office premises and a multi-level parking for 688 cars. There will also be a multi-functional conference hall for up to 200 people, banking premises, restaurants and cafes, a fitness centre with a swimming pool operated by Reebok, a professional dental clinic and a beauty parlour.

POWER PLANT CONSTRUCTION

The power supply for the new MIBC has been a subject of much contention among foreign investors. The complex requires an efficient power distribution system operating at 20kV rather than the more typical 10kV.

CITY JSC and power supplier Mosenergo JSC put forward a proposal in 1999 to the Moscow City Government to develop a new power network for the MIBC, mini-metro, metro junction core, Eurostation and Sheremetyevo-Moscow Rapid Transit System.

The power and heat supply for the MIBC will be provided from three sources: the Mosenergo power station ‘SS-CITY-1’; the district heat and power station ‘Krasnya Prsnya’; and the MIBC power plant on Plot 7A, which entered its first phase of construction in 2002–2003 and is now well into its second phase with completion expected in 2006.

Having established the power supply sources, the next part of the project was the bulk power and distribution network to support the MIBC. Phase 1 of the MIBC power plant has seen the construction of a Gas Turbine Unit (GTU) and Heat and Power Plant (HPP) with a capacity of 50MW and a substation with two transformers for 110V from 20kV and 110V from 10kV and two 63MVA distribution units. The next phase will see an increase of capacity up to 100MW.

The developers of the power plant are CITY JSC and CITY-ENERGO Company Ltd. The contractors for the project are Liard-Stroy Ltd and the designers of the plant were Mosproekt-2 and VNIPI Energoprom.

TRANSPORTATION CONSTRUCTION

The Moscow–Sheremetyevo line is the first phase of the RTS to connect the three satellite airports to the centre of Moscow. This first line, 34.3km in length, will provide interconnectivity between the airport, regional centres and urban junctions and also interconnect with the existing municipal transport system. The project was started in 2001 and eight stations were planned. This stage is now complete.

The developer for the RTS is CITY JSC in collaboration with the City of Moscow; the designer is SNC Lavalin of Canada. The Phase 2 section of the project to extend the line to cover Vnukovo Airport was started in 2004 and is now nearing completion (scheduled to open in 2007).

The RTS development not only concerns rail links to the new commerical centre of Moscow but it is also a development in its own right. The Plot 11 development will include the construction of the new Moscow transport terminal uniting the RTS, three lines of the underground and the intercity bus terminal.

The complex will include transport stations with waiting rooms, boarding areas for VIPs, a hall of customs inspection, left-luggage offices, a 342 room hotel and ticket offices.

For this section of the development Citer Invest B.V. of the Netherlands is the developer, Behnish and Behnish Architekten of Germany are the architects. The investment is $200 million and construction is underway with an expected completion in 2007.

MINI-METRO LINE

A mini-metro line was also constructed to provide transportation within the MIBC and to connect with the historical centre of Moscow. There are three stations, one constructed in Phase 1 of the project and two in Phase 2. The three stations are Dorogomilovskaya, International and Moscow – City.

The length of the line is 5.85km. The engineering and transport contractors were Metrogiprotrans JSC. The line along with the International and Moscow – City stations came into operation in September 2005.

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